Cui Dongshu: In 2024, the sales volume of the automotive industry is showing a feature of strong growth every quarter. Gross profit margin and profit are continuously improving.

Cui Dongshu stated in his article that the demand for automobile production in 2024 will continue to grow steadily, with the expectations for social consumption improving continuously and high-quality development being solidly promoted, leading to a positive trend in the recovery of the automotive industry. In 2024, the production of automobiles in China will reach 31.56 million units, a year-on-year increase of 5%; the production of new energy vehicles will reach 13.17 million units, a year-on-year increase of 39%, with a penetration rate of 42%. With the promotion of the national "dual new" policies, car manufacturers' sales volume in 2024 will show characteristics of strong growth quarter by quarter, and the gross profit margin and profit efficiency of mainstream car manufacturers will continue to improve. 1. Gross Profit Performance of Vehicle Manufacturers in 2024 Overall, the gross profit margin in 2024 is relatively high, with the average gross profit margin of publicly released car manufacturers' annual reports currently around 15%. Some companies, such as Chongqing Sokon Industry Group Stock, Xiaomi, and Ideaxiam, have gross profit margins exceeding 20%, while mainstream companies are around 14%-18%. The gross profit margin of new energy companies has also reached a good level of above 5%. 2. Analysis of Cost and Expense Performance of Vehicle Manufacturers in 2024 Due to the different financial statement requirements of different listing locations, the breakdown of management expenses, sales expenses, etc., is not very complete. Currently, the research and development expenses of new energy vehicle companies are relatively high, especially Xiaopeng's research and development expenses account for more than 12%, with significant technological investment. The research and development expenses of many companies are still around 5%, but due to the large scale of large companies like car manufacturers, the investment in research and development expenses is enormous. Sales expenses are relatively high for companies like Xiaomi. Tesla's comprehensive cost is only 5%, which is relatively cost-effective. 3. Changes in Revenue and Profit of Vehicle Manufacturers in Past Years In recent years, the sales revenue of mainstream independent companies has grown rapidly. BYD Company Limited increased from 127.7 billion yuan in 2019 to 777.1 billion yuan, a six-fold increase. GEELY AUTO has shown strong growth in the past two years, with a growth rate of 34% in 2024, the fastest among leading companies. Xiaomi Group's performance in 2024 was excellent after two consecutive years of decline. The growth rates of companies like Lingpak, Jikey, and Xiaopeng are still very fast. Tesla's revenue has declined, while the performance of General Motors and Ford is average, and the decline in revenue of European car companies is also significant. 4. Changes in Revenue and Profit of Vehicle Manufacturers in Past Years The gross profit margin of mainstream independent companies in 2024 has improved compared to 2023. Looking at the trend of gross profit margin, the performance of companies like Chongqing Sokon Industry Group Stock, Xiaomi, and Great Wall with a gross profit margin of over 20% is excellent. The gross profit improvement of independent new energy vehicle companies like Ling Pao is significant, achieving a gross profit of 8% in 2024, with a rapid improvement rate. 5. Changes in Revenue and Profit of Vehicle Manufacturers in Past Years The cost rate of new forces is gradually decreasing overall, with the proportion of expenses gradually decreasing as the scale increases. In particular, companies like Xiaopeng and Ling Pao have relatively low cost rates. The cost rate of traditional car companies is generally relatively stable, including BYD Company Limited, Geely, and Great Wall, with cost rates generally maintained at the level of 11%-13%. 6. Changes in Revenue and Profit of Vehicle Manufacturers in Past Years Although the overall performance of car companies' gross profit margin is good, the differences in profitability among different companies are significant due to differences in research and development expenses and other factors such as taxation. In 2024, BYD Company Limited, Xiaomi, Geely, Great Wall, and other companies have achieved explosive growth in profits. Chongqing Sokon Industry Group Stock's profit has improved from a loss of 4.2 billion in 2023 to a profit of 4.7 billion in 2024, showing an improvement of 8.9 billion. However, some companies still have relatively significant losses, including Guangzhou Automobile Group and Jianghuai Group, which have newly added losses in 2024. Overall, the profitability of domestic car companies seems to be better than that of American car companies. The profitability of international car companies such as General Motors and Ford is relatively low.